Reed's loses fizz on planned stock offering

Reed'S

20/11/2020 11:47

** Reed’s Inc  REED.O  down ~20% to 61 cents premarket as
carbonated beverages maker looks to raise equity
    ** After the bell Thurs, co announced stock offering to
repay ~$4.6 mln under credit facility and repay ~$4 mln of
convertible debt  urn:newsml:reuters.com:*:nGNX1K4Vz
    ** Sources say sole bookrunner Roth Capital marketing deal
size of ~$10 mln
    ** Co also provided fiscal 2021 net sales guidance of
$45.8-$46.6 mln vs Street consensus of $43.95 mln, per Refinitiv
IBES data  urn:newsml:reuters.com:*:nGNX6g8D1t
    ** REED has ~63 mln shares outstanding and ~55.4 mln shares
of free float, per Refinitiv data
    ** Stock has fallen 16.5% YTD

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com))